Ericsson Deal Will Bolster M2M Market, says Frost

Ericssons acquisition of Telenor Connexions M2M (machine-to-machine) Technology Platform is set to buoy the M2M market, according to analysis firm, Frost & Sullivan. Frost analyst Yiru Zhong says the move makes Ericsson a credible force in the M2M sector and will encourage development within the wider market. 

“Ericssons acquisition provides service providers – and not only telecoms players – with an alternative way to achieve faster time to market with regards to deployment of M2M communication services,” says Zhong. “As such, we see a potential for Ericsson to disrupt traditional M2M players by opening up possibilities for new types of service providers.”

Ericssons customer reach allows it to position its M2M offering to a broad range of telecom service providers, according to Zhong. She expects the acquisition to set the scene for the second wave of telecommunications entry into the M2M space.

“Telenor Connexions decision to sell its M2M technology platform and outsource operations to Ericsson is a clever strategy,” says Zhong. “It can now be truly customer-centric and have better control over its cost of sale, allowing it to extract the maximum possible margin from its M2M offers.”